Pyramid Technoplast Upgraded to 'Hold' by MarketsMOJO, But Underperforms in Market

Pyramid Technoplast, a microcap company in the plastic products industry, has recently been upgraded to a 'Hold' by MarketsMOJO on October 15, 2024. This upgrade is based on the company's strong ability to service its debt, with a low Debt to EBITDA ratio of 1.00 times.
Technically, the stock is currently in a Mildly Bullish range, showing improvement from its previous Mildly Bearish trend on October 14, 2024. Since then, the stock has generated a return of 2.02%. Additionally, with a ROE of 13.1 and a Price to Book Value of 2.9, the stock is considered to have an attractive valuation.

However, over the past year, the stock has underperformed with a return of -14.84%, while its profits have also fallen by -8%. This is due to poor long-term growth, with an annual growth rate of only 18.74% for operating profit over the last 5 years.

In the latest quarter, the company's results were flat. Despite its small size, domestic mutual funds hold only 0% of the company, which could indicate that they are not comfortable with the current price or the business itself.

Furthermore, the stock has underperformed the market (BSE 500) in the last year, with negative returns of -14.84% compared to the market's positive return of 35.67%.

Overall, while Pyramid Technoplast may have some positive aspects, such as its ability to service debt and attractive valuation, it is important to consider its poor long-term growth and underperformance in the market before making any investment decisions.